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A
new wastewater treatment plant in Tottenham is to be constructed by
Bennett Mechanical Installations Ltd as per the recent contract award; a
lowest bid of $16,607,000 (not including HST) was quoted by Bennett. But
a $2.5 million probability factor, and $358,000 in construction
administration expenses, raises the total budget to $19.45 million.
According to Brendan Holly, Director of Technical Services, New Tecumseth updated the councilors about the contingency, which generally on a project this content is between 5-6 per cent, is approximately 14 per cent here because Bennett has served in a low profit margin, the higher rate to secure against expected change orders are recommended by the Town’s project consultant, Conestoga-Rovers.
The frequency, the quantity, and the aggregated magnitude of change order are likely to increase, with a contractor who has bid with a very low profit margin, and can conclude in double or even triple the normally expected range. Resulting in a probability that requests for a change orders by the contractor, can raise up to and beyond 10 to 15 percent of the actual contract price, as the low-bidding contractor has low profit, or risk margin, in their quote, commented by Conestoga-Rovers.Read complete story at http://www.tendersontime.com/blog-detail/bennett-mechanical-installations-ltd-build-tottenham-sewage-plant-51.php
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